To catch a falling knife

It's been said that trying to call the bottom of a financial market is to try catching a falling knife. Terribly impressive if you can do it but highly likely to cause great damage.

However, there are times when we might want to try doing this: like now. Are we at the beginning of a recession? In which case financial assets are absurdly cheap. Or are we at the beginning of a depression, in which case they might be about the right price? No one really knows as yet....however, there is something we do know about how we should approach investing if and when we think the time is right.

We should be using a online broker to do our stock trading. The thing that usually kills the efforts of the individual investor is not lack of knowledge: the professionals don't often pay for themselves. No, rather, what really kills is the costs of moving in and out of a position. That's what online trading allows you to cut, the costs of doing that, of buying and or selling a specific stock or bond.

So, remember, when you decide you do want to try catching that falling knife, do it online.